anything having to do with animals. we love dogs, we love animals, and we certainly love the ocean. get us somewhere fun next friday. >> if you love the ocean so much, rob, if you see really how it works that a person in street clothes should be in there to be rescued. >> yeah, we thought about that. we ran up the legal flag pole and the lawyers said we're not covered for that insurance-wise. i was willing until i saw these really big jelly fish. they have huge jelly fish, john. it's really scary in that water. and the dogs are big too. >> all right, rob, have a great weekend. see you next week. continue the conversation, go to our blog at cnn.com/amfix. thanks very much for joining us. >> thanks for joining us, have a great weekend. here's "cnn newsroom" with heidi collins. paying their respects. the thousands of people pass the casket of senator edward kennedy. this hour, a look at kennedy's complicated relationship with his religion. banned by the taliban from

going to school, these girls now have a second chance thanks to volunteers not much older than them. and arresting art, a model faces charges after a nude shoot in a new york museum. we hear from her, the photographer, and the museum. good morning, everybody, i'm heidi collins, it is friday, august 28th, and you are in the "cnn newsroom." in fact, we have a whole lot going on today. let's quickly walk you through it now. thousands of acres on fire right now in southern and central california. we're going to have the very latest on evacuations going on there, and also our bonnie schneider with a look at what firefighters are going to be facing today. it's going to be tough out there. also tracking tropical storm danny, as well. and finally, this incredible story. missing girl found woman nearly two decades after her abduction, jaycee lee dugard is free, but a happy ending with an unbelievable twist. at this hour, though,

firefighters are battling to save hundreds of homes from wildfires burning up and down california. flames raging from los angeles county in the south to monterey county in the central part of the state. more than 1,500 people were ordered to evacuate wealthy seaside homes. that order, being lifted this hour. the fire there is one of four burning in southern california. and fire officials say they don't know right now how many structures have actually been damaged. hot, dry weather is certainly not helping firefighters as you would imagine. i want to get more on that from bonnie schneider. that's sure making things tough, bonnie. >> we are seeing temperatures in the triple digits, that's unseasonable and very hot for this type of weather. all the areas you see here highlighted in red and that does include areas in and around los angeles, particularly in the mountains and foothills of the region just to the north, just

south of oxnard, you'll find that temperatures certainly in the morning, temperatures already at 67 degrees, that's in los angeles. right along the coastline, the temperatures are cooler, but once you start heading a little further inland, we are expecting those numbers to soar with a hot-dry gust of wind. any marine flow coming in, well, to the north we are getting moisture and rain coming up into northern and central california. the problem is, there's no rain for southern california. it is very dry in this region. that combined with possible gust of maybe a santa ana wind will aggravate conditions. and heidi, we're not forecasting too much of a change for the weekend. the heat will persist and so will the dryness and that makes a big difference in why we have the red flag warnings posted. >> we're going to keep a close eye on that story throughout the morning. bonnie schneider, thank you. in california, another story to tell you about, a woman is reunited with the daughter who was abducted 18 years ago. jaycee lee dugard was 11 years

when she was snatched. since 1991, a convicted sex offender and his wife have kept her locked away in a secret backyard compound. during that time, according to police, she has given birth to two daughters by her abductor. those girls now 11 and 15 have never been to school, never even been to see a doctor. i want to get more details on this remarkable and horrific story at the same time. cnn's randi kaye now with the latest. >> reporter: june 1991, she was grabbed as she walked to her bus stop in south lake tahoe, california. her stepfather on the driveway saw his little girl blond blue-eyed all dressed in pink disappear into a strange car. >> what do you remember about the day that jaycee disappeared? >> the minute i saw that door fly open, i was trying to get to her. my neighbor was out front watering, i told her call 911. >> reporter: those two minutes turned into nearly two decades. there were searches, missing fliers, and reward money.

nothing brought jaycee back. not even her mother's plea. >> jaycee, if you hear mommy, i love you and i want you to come home tonight. >> reporter: jaycee finally did come home wednesday when she suddenly walked into a police station with her alleged kidnappers and told officers who she was. >> my wildest dreams after 18 years, this is like the total package like winning the lotto. >> reporter: early thursday morning, jaycee's stepfather got the call he's been waiting for from jaycee's mom. they're now separated. >> she goes, they found jaycee and she paused for a few seconds, goes, she's alive. so we both cried for about ten minutes. before we could talk. >> reporter: jaycee's accused kidnappers phillip and nancy garrido are in custody, charges expected this week. here's how it all unfolded. on tuesday, a security guard at the uc berkeley campus noticed mr. garrido handing out fliers

with two young children, a background check showed he was a convicted felon on parole. so wednesday he was interviewed at his parole officer, at his side, his wife, two young children, and a woman he called alyssa. mr. garrido admitted he kidnapped her all those years ago and fathered two children with her. even though parole officers had visited garrido's house over the years, nobody ever spotted jaycee dugard. why not? >> there was a secondary backyard screened from you from literally all around, all access from a narrow tarp. her and the two children were living in a series of sheds. one shed entirely soundproofed, only opened from the outside. >> reporter: phillip garrido served time for kidnapping and rape in nevada. out on parole, he wears a tracking device. the children he fathered are now with their mother jaycee, 11 and 15 years old, police say they've never been to school or to the doctor.

still, they and their mom are free. >> i'm just so happy. i haven't gone there. >> where's this emotion coming from? >> it's years locked up. i'm an old vietnam vet that's shell shocked. how much nerves do i have? to have to go through this. >> reporter: tears of joy after so many years of sadness. randi kaye, cnn, los angeles. earlier this morning on cnn we heard from jaycee's stepfather, he described those first moments of terror. >> oh, jaycee walked up the hill on the bus stop and a car had come down and circled and went real slow, got my attention, that's how i recognized the car and it went back up the hill and waited for her to get to the top of the hill, and once it did, i guess they wanted to see if cars were coming from behind or above, once it got next to her, cut her off, and basically when i saw the door fly open, i jumped on my mountain bike, i realized i couldn't get to her

in time, so i rode back down, yelled at a neighbor for 911 and they had like a two-minute head start. i really had a lot of questions like how did they get out of there? and you would think they would block the roads off and they would have had them, but they got away. >> he says he has lived under suspicion unfairly for the past 18 years. he says the stress of jaycee's disappearance led to the separation from jaycee's mother. a new set of killings is rocking the college campus of virginia tech today. authorities say they are treating the deaths of two students as a double homicide. the bodies of 18-year-old heidi and 19-year-old david were found in the nearby jefferson national forest. both appear to have been shot. two years ago at virginia tech, a student gunman killed 32 others and himself. in january, a student beheaded a fellow student in a campus cafe.

mourning a loss and paying respects. you are looking now at live pictures of the john f. kennedy library in boston. that is where thousands of people, friends and strangers alike are getting another chance to say good-bye to senator ted kennedy as his body lies in repose. deborah feyerek gins us lijoins. >> reporter: they opened up the viewing 15 minutes early. the line stretches down the avenue, hundreds of people waiting to see him, to see little parts of what america has lost, but also obviously to remember all of the changes he made. and speaking to people in line, you get the sense this is one individual who impacted so many people in his own way. one of them maryann flanagan. you have a daughter with special needs. you really felt, you told me you

felt he was working on your behalf. describe that. >> he -- ted and his whole family were always so helpful to special needs of all citizens. but with my daughter and with a group of children that she, you know, would be with. he did so much with health care and helping them feel that they were -- they had a voice in the community. and he just did that up until the very end. i had an e-mail from his office on a matter i had e-mailed just a couple of months ago. so it was just very important to them and that made us feel special. >> reporter: when you walked inside, you've already seen the senator lying in repose. describe what it was like in there. >> it was very solemn, respectful. but i just felt a thrill to be able to be here today and to say

my personal thank you for all the efforts that he has done throughout his life. and all of the kennedy family. i grew up in massachusetts so you grew up with the whole family. and this is the first such event that i've been able to attend and i just felt that it was an honor to be there. >> reporter: and then finally his daughter kara inside, greeting people as they passed. >> yes, that was something we didn't expect. after you pass the casket, kara was standing there with her two children and shook each one of our hands. and we could actually offer our condolences to her personally. >> reporter: maryann flanagan, thank you so much. we appreciate your joining us. what's interesting, i was able to go inside and you're struck by the profound silence in the room, heidi, and what you see, you see folks walking past, and looks like almost a gray wall, but, in fact, those are screens

that have been pulled over huge bay windows that overlook dorchester bay. again, that casket looking over at the water. again, people just moved by the experience. one woman telling me, you know, it feels so final. what is nice is that on the way into that room, there's a whole display of his life. one picture in particular, he's sitting there with his older brother joe kennedy, so you have the oldest sibling and the youngest sibling there together. again, the line stretches now certainly a couple of thousand people. expected to go on at least until 7:00 today. >> i want to let you know to stay with cnn for special coverage for the life and death of senator kennedy. he is expected to lie in repose at the john f. kennedy library until 3:00 eastern this afternoon. and then a private memorial beginning at 7:00 tonight. tomorrow morning, a private

funeral mass gets underway at 10:30 in boston, and then there is the burial service at arlington national cemetery. the senator will be laid to rest near his slain brothers john and robert. federal reserve chairman ben bernanke is in charge of protecting your money. apparently someone needed to protect his. today, more proof of the dangers of identity theft. (announcer) what are you going to miss when you have an allergy attack? achoo! (announcer) benadryl is more effective than claritin at relieving your worst symptoms. and works when you need it most. benadryl. you can't pause life. benadryl. so? mmmm ok. you were right. these healthy choice fresh mixer thingys, they taste fresh... say it again! what? say it like, "mmmm, these healthy choice fresh mixers taste freshh!!" they taste fresh... wait. what are you doing? got it. you're secretly taping me? you were good too! but you know, it wasn't a secret to us, we knew... yes, but it was a secret to me. of course, otherwise i would be sitting like this and completely block his shot. so that's why i was like... didn't you notice this was weird? no. they taste fresh because you make them fresh.

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fake i.d.s, think that can't happen to you? well, not even the chairman of the federal reserve is immune. ben bernanke's wife was a target on a scheme that targeted many people. gerri willis here with ways on how to protect yourself and your money. even the fed chairman can't escape this kind of crime. >> that's right, and i want to tell you some details. ben bernanke's wife, anna was at the starbucks near their capitol hill home. her handbag was on the back of her chair and it was stolen by thieves. they got her checkbook, driver's license, four credit cards, and a small amount of cash. now, what happened from there. a few days later, according to the news week account of the story, the thieves were at the bank trying to cash their checks. this turned out to be a large

sophisticated ring of thieves trying to steal identities and fabricate fake identities and sell them. and i've got to tell you, the moral of the story, heidi, it doesn't matter how smart you are, how high profile, you are at risk for identity theft. >> yeah, no question. so what are some of the things we can do? >> there's no one way to protect yourself. first thing you want to do absolutely is make sure that you're shredding documents that come into your house. you don't put them in the garbage can. shred your financial statements, any credit card offers, even something as simple as say your annual statement of benefits from your employer, health care benefits, could be something that thieves could use to steal your identity. reduce the amount of mail you get. make sure you're looking at the financial statements online and not in the real world. and of course, all of this is about protecting your social security number because that is the real key here. identity.

that do not carry it in your wallet, don't scribble it on a piece of paper, and don't give it away to someone you know. >> hopefully they'll listen today. our personal finance editor gerri willis, thank you, gerri. universal health care reform, ted kennedy called it the cause of his life. what touched off a lifelong campaign.

a look now at our top stories this morning. a woman snatched from a bus stop when she was 11 is found alive. california police say a convicted sex offender has confessed to kidnapping jaycee dugard 18 years ago, fathering two children with her, and keeping them all locked in a shed behind his house. hundreds of families are forced from their homes by wildfires. thousands of acres are burning in central and southern california. the fires stressed from los angeles county north to monterey county. firefighters say lots of dry,

dense brush are feeding those flames. and thousands of people are lined up again to file past the flag-draped casket of senator ted kennedy. his widow says she's taking tremendous solace from the huge crowds at the jfk memorial in boston. here's the question for you this morning, too much skin at the art museum. one photographer may want to rethink his location choice after his nude model got busted. she was bearing it all inside new york's metropolitan museum of art right there in full view of everyone in the arms and armor display. she now faces a public lewdness charge. so here's what we want to know. was it art or was it porn? some people say this is really an easy one, others say not so fast. make sure you go to cnn.com/heidi. we will bring it up here on the blog. we will bring some of your

comments up as soon as you write to us later in the show. is it art or is it important?

you are watching some live pictures this morning from the john f. kennedy presidential library in boston where you see thousands of people in line to pay their last respects to senator ted kennedy. more than 20,000 people viewed the flag-draped coffin yesterday. the library doors stayed open well past 1:00 a.m. this morning to allow everybody who had gathered. stay with cnn for continuing coverage of the vigil and services honoring the massachusetts senator.

senator kennedy called universal health care "the cause of my life." it was a personal campaign that began in the early days of his legislative career with the health crisis of his own. here now dr. sanjay gupta. >> reporter: in 1964, less than a year after his brother, the president, was assassinated, senator ted kennedy had his own brush with death. >> senator edward m. kennedy was seriously injured when his private plane crashed in the woods. >> reporter: kennedy was in the hospital for months. >> this was, i think, the fir first -- one of his first experiences of how completely vulnerable and helpless he could be. >> reporter: and that was just one piece of an excruciating family chart. and then there was cancer. in 1973, the senator's son, teddy jr., then 12 was diagnosed with bone cancer, he survived,

but only after losing a leg to amputation. >> he really felt that everybody should kind of have the health care that his son had. >> reporter: the senator himself recently wrote this, "my family has had the care they needed, other families have not simply because they could not afford it." daughter kara fought off cancer, as well, beating a lung tumor in 2002. >> the many things he worked on, nothing struck quite as close to his heart as health care reform. he once said universal health care was an issue that burned in his soul. >> reporter: in 1997, he and republican orrin hatch were behind expanding health coverage for children. and in 2006, he worked with mitt romney to push through a ground-breaking system of universal care in his home state of massachusetts. at a crucial point in last year's presidential campaign, the senator threw himself behind barack obama and the push for

universal health care. >> this is the cause of my life. new hope that we will break the old gridlock and guarantee that every american north, south, east, west, young, old will have decent quality health care as a fundamental right and not a privilege. >> whether the fight over health reform turns out to be senator kennedy's crowning legacy or a final bitter loss is yet to be seen. but even in death, he's a big part of the debate. dr. sanjay gupta, cnn, reporting. >> cnn will bring you extensive coverage of the kennedy funeral all day tomorrow. services begin with a private funeral mass at 10:30 a.m. eastern in boston. the burial is set for 5:00 p.m. in virginia. he will be laid to rest near the graves of his brothers.

president kennedy and senator robert f. kennedy. a school bus hijacked. terrified students jumped into action to save each other as their bus goes out of control and crashes. g to college, so she needs one. - can you help me? - ( shouting ) - yes, you. - our line of next class laptops are perfect for college, and they start at just $650. are those good? 'cause i don't want to get her something - that she thinks is totally lame. - no, they're awesome. and they come with pre-loaded software so she won't have to do a thing. - great. she's good at that. - ( blue shirts laugh ) laptops designed for college and thousands of people eager to help. best buy. buyer be happy.

let's get you to wall street now. the dow is riding an eight-session winning streak. i can't even say it it's been so

long we've seen this. and there could be positive momentum for the final trading day of the week. susan lisovicz with a preview of the day ahead. and a less tangled pun, hopefully. hey there, susan. >> good morning, heidi. and the opening bell rings on the final trading day of the week and we could see some more positive, i'm seeing it on the screen right now. we haven't had a win streak that long in two years. keep in mind some of the daily gains were less than five points. >> i don't care. >> it was up. it's going up, we're going to get to 14,000 again at some point. >> yeah. >> investors could be taking their cue from overseas, european economic confidence is rising, which could bode well for spending. here at home, we do have signs that american choppers are coming out to buy computers. dell's quarterly profit and sales still fell by more than 20% because dell's cut prices and people are buying cheaper netbooks, also companies aren't

spending, but dell offered an upbeat outlook and its shares are up 8.5%. meanwhile, intel boosted its sales forecast this morning, its shares right now are up 4%. intel makes chips, they are used in a lot of computers. so both of those -- both reports very encouraging for the tech market. and let's give you a third one. apple's iphone, it'll be hitting the chinese market at the end of the year. the company reaching a deal with china, the big phone company. it's a huge price for apple. do we need to say -- china has more than 650 million mobile phone accounts and apple shares are up 1.5%. overall, nice gains at the open. we are on the next to last trading day of the month of august. can you believe it, heidi? but what a nice month it's been. the dow's up 4.5%, the nasdaq's up 2.5%, the broader s&p 500 is up 4.5%.

so a nice month, indeed it's been. and could be lucky number nine today. >> yeah, see, i like that a lot. i think it was actually 15,000 i was talking about all of those weeks ago. but thanks for lopping off 1,000 there. >> we're going in the right direction. >> exactly. >> thank you. help wanted, 50 jobs, job seekers, more than 1,000. patterson air force base held the job fair yesterday. interviewers were looking for engineers, financial management experts, starting salary around $65,000 a year. those who don't get hired now, may be one of the 300 or so expected to be hired in the next few years. if you were looking to bid on the once largest post office building in the world, well, you're out of luck. chicago's old post office was auctioned yesterday for $40 million. the building closed when the post office relocated back in 1995. it's been on sale for 12 years.

the winning bidder plans to restore the property to serve as a focal point of chicago. once again, i want to give you a live look now at pictures from the jfk presidential library where thousands of people have been filing past the coffin of senator ted kennedy. senator kennedy had spoken of his complicated relationship with the catholic church. cnn's dana bash now with more on his faith. >> reporter: ted kennedy's family chose this church for his funeral mass because he prayed here every day when daughter kara was diagnosed with cancer. an example of his quiet, but deep catholic faith. >> did you consider him a religious man? >> very much so. >> reporter: father jerry counseled kennedy for more than 30 years. >> this is an old picture probably goes back to 1980.

>> reporter: he says kennedy not only attended sunday mass, but sought him out to discuss the tenants of catholicism. >> he would come up to me and continue the theme i was preaching on. >> reporter: kennedy often said it was his mother's catholic faith that guided his famous family's political agenda. he used scripture in his push to end poverty and discrimination. >> my favorite parts of the bible are always matthew 25 through 35, i was hungry -- >> reporter: but kennedy's support for abortion rights go against the faith. >> roe v. wade made the declaration, that is the law of the land. >> he once told me he had a complicated relationship with the catholic church because he was for abortion rights. >> i think he would wish he could have found a middle ground, a common ground with our

church institution. i pray for him at mass yesterday morning and i got an e-mail saying you scandalized by praying for ted kennedy. >> reporter: the father says ted often came to him for guidance during well publicized low points in his life. and in the last year too ill to go to church, kennedy asked him to come give communion at home and never asked others to pray for him. >> when it came to the prayers of the faithful as the time people normally make petitions and often time he would make a petition for his health and so forth. he never made a petition, but he always had two or three prayers of thanksgiving, gratitude. >> one of the last letters ted kennedy wrote in july was a letter to the pope, which he asked president obama to personally deliver when he visited the vatican last month. neither the senators' aides or the vatican would disclose what the letter said. dana bash, cnn, washington. the wildfire danger grows by the hour in california.

we're looking at some live pictures right now. thousands of people from rancho to soledad have actually fled their homes ahead of those flames. they're burning through steep canyons and dry brush, which would make it even more difficult for firefighters. and that being said, the forecast not really all that great. bonnie schneider joining us to talk more about that. not sure where you want to start, bonnie, but i'm thinking the firefighters are going to be facing more dry temperatures, more high heat? >> that's right. we are not only looking at that, heidi, but as we go through the weekend, we have a couple of them listed here. there's a rancho fire and there's the town it's named for. a lot of the fires are burning and firefighters are having a tough time with containment, many of them have 0% containment and that has to do with the dry conditions and the winds in the area. the winds have subsided, a little stronger yesterday, but temperatures in los angeles got up to 99 degrees. it is definitely hot out there,

and we're going to see the heat continue to build. here's some new information for you on tropical storm danny, we have a tropical storm watch now in effect and this goes from cape lookout to duck and that includes the outer bank. it's not surprising this vulnerable area here is going to be subject to tropical storm-force winds as we go through the next 24 hours. we'll be watching for that, as well. let's take a closer look at danny now, i want to show you the latest conditions. right now the maximum winds are 40. the storm's main activity in terms of convection and strong thunderstorms is mainly to the east of the storm, that's where we're seeing it. there's the center of circulation, but the storm is forecast to work its way to the north and eventually head out to sea. but it will bring very strong winds to the coastline, heidi and rip tides, as well. >> all right, bonnie, tracking it closely for us, thank you. forbidden from school, and now they're getting a chance to go back to the classroom. young girls rebuilding their lives in pakistan. (announcer) this is nine generations

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checking today's top stories now. iranian president ahmadinejad is vowing to make opposition leaders pay for the election protests in june.

today he calls for them to be put on trial and given stiff punishments for quote orchestrating and provoking the painful unrest. ahmadinejad says activists on trial right now were deceived by opposition leaders and should be treated with mercy. a tense meeting between hamid karzai and holbrook. the two men had sharp exchanges about afghanistan's recent election. holbrook emphasized to karzai the election process needs to be respected and if a runoff election is required, then so be it. early results show a close race between karzai and his main rival. forbidden to go to school. we're talking about young girls in pakistan's swat valley, unfortunate pawns in tpakistan' fight with the taliban. now there is some hope for them. cal perry reports.

>> reporter: it's a war that separates extremists from more moderate forces clashing in the most beautiful part of pakistan, the swat valley. the taliban had intimidated the population, including young girls forbidding them from going to school. these 26 girls are living witnesses to the central battle within islam today. they're in islamabad, part of a program that takes them out of the homes in the swat valley. helping them, a group of university students of pakistani background who have returned home from abroad with a simple goal, teach the children the importance of education. she chose to spend her summer here, between the third and fourth years of her studies at stanford university in california. >> pretending to be younger students so they could go to school not wearing their uniforms so they could go to school, hiding their books under their shawls so they could go to school. and at that point, i think we were just so angry and upset and

emotional that we decided we had to do something. >> reporter: at times, this group of mentors seems disorganized. she is only 20 years old and has done nothing like this before. >> we need support, we need -- we need, unfortunately more organization, more bureaucratic nitty-gritty that you don't want to do that you have to because we are young and that does come with the burden of not being as easily trusted and not being seen as capable. >> reporter: the idea is simple enough, confidence-building measures, critical thinking lessons, all framed in the context of religious values the children have heard before. but this time, from a different point of view. it's still dangerous, the girls cannot talk about taliban harassment because while the government is confident the taliban was flushed out of the region, the ideology of sharia law may still linger and these

girls will have to return to their homes in the swat valley. so we talk about childhood dreams. >> i want to become president and to rule this country in a good way. >> you want to become president to prove to people that a woman can become president? >> yes. >> and you decided this how old again are you? >> i'm 10. >> i don't think i believe you. okay i'm 35. >> reporter: they're young, idealistic, but have seen enough to make them grow up quickly. >> cal perry joining us live from islamabad. cal, tell us a little bit more about what these girls have to go through in order to just attend school. >> reporter: well, when the offensive started three four months ago, these girls were immediately influenced by this fight. this ideological fight that we speak about in the piece. the taliban didn't want them to go to school, so they started threatening the girls and their teacher. these girls tell the organizers

they had to hide their books, they would change out of their school uniforms, lie about their ages, pretend to be younger to continue to go to school. some of them had their schools destroyed and they would move to other neighborhoods to continue to go to school. but the idea of these death threats, i think is something that we need to talk about to a further extent. i'm happy we can do so on economic. the principal of the school who came down to help with this program was under significant death threats from the taliban. one of the organizers told me the person who threatened his life was then killed by the pakistani army was what allowed him to come down here and help these girls, heidi. >> it's an incredible story. and as we listen, i believe, to the evening prayers behind you, cal, explain that a little better, if you would, because it's so important when we tell these stories. you say domestic, we're talking about cnn in the united states versus some of our international channels we have here. you certainly don't want to risk the lives of some of these women and girls involved.

>> yeah, and these girls that actually organize this event, that brought the girls down from swat valley. as you see, they're 20 years old, and that was something that amazed me. when i went in to film this piece with our crew, i thought this story's going to be about these 11-year-old girls and we saw this other story about 20-year-old girls, going to schools like oxford, they decided to take their summer break, come back to where their heritage is and help these girls. they have no experience in doing this. i asked one of the girls how are you going to run an mgo, they were struggling with the safety issue, the security issue. they want the show the girls to bring attention, but in showing the girls, do you put them at danger? >> it's a tough one. appreciate their dedication to their country and the young girls there. cal perry, thanks so much. great story coming out of pakistan for us today. new york landmarks, the backdrop for these nude photos. but when a model showed up

naked, police took action.

♪ who let the dogs out well, you've all heard the

expression dog days of summer, right? mystic, connecticut, probably knows that saying a little bit better than most, and so does our rob marciano. he's standing there right now. it's a beautiful shot, rob. you'venow. beautiful shot. you have a great story. a lot of really good and important work going on there. >> exactly and it's all about dogs. who let the dogs out. sometimes i need to be let out of the doghouse, that's for sure. we are atomistic sea port, connecticut. it's an amazing place, been around 80 years and 500 different boats here and four of which are historic landmarks, one of which has a hurricane connection. it's they're refurbishing and the oldest wooden whale boat in existence and they're refurbishing it with old wood from hurricane katrina keys that were killed and awaiting ike trees, as well. see that fancy old-time boat there, it is gorgeous.

i am told and it is confirmed that is registered to one johnny depp. he is not here, but, nonetheless, that gives hollywood cachet to where we are right now. not that i'm a name dropper. mystic river, where they filmed the movie, as well. just to promote mystic sea port they have dog days festival almost in conjunction with the dog days of summer and they have 50 different dogs out here and we've done a number of exhibitions with them. rufouses, he's the grand puppy of the event, if you will. gorgeous, bull terrier. the most award winning bull terrier ever. 335 of which are -- >> best in show, right? >> best in show. westminster dog show best in show and then also what else did we have? search and rescue canine unit

from connecticut and he came and found me just using the scent and then, also, these nufies, 130, 140 pounders and they can actually save people from the water. they jump in the water off a fishing vessel and you grab on to their hips and they can swim you back to shore i found one reluctant to volunteer to help us with that. we're also watching danny, if you happen to make a left turn, we are in position to head to the cape, just in case, but that may not be the case. >> from the look busines behind looks very calm on those waters. thank you very much, rob marciano. appreciate that. a lot going on this morning in the newsroom. our cnn correspondents are ready to break it down for you. antioch, california, with dan

simon where those fires are really blazing. dan, good morning. >> good morning, heidi. we are here in antioch, california, this is where the young woman, the 29-year-old woman jaycee dugard spent the last 18 years there in the backyard. a series of tents and sheds. authorities were here all day yesterday collecting evidence. we'll have a live report coming up talking about how this case all unfolded, heidi. i'm stephanie elam in new york. rebuilding your retirement nest egg could get harder. the irs may reduce how much american workers can contribute to their 401(k)s. i'll tell you why and by how much coming up in the next hour. and i'm gerri willis in new york, i'm taking a look at signs the housing market may be in recovery, at the top of the hour. >> all right, guys, thanks so much. dan simon on the missing girl storey and the fires we're

following closely in the same state. we also want to know how the new housing numbers are actually affecting buyers, sellers and, of course, the banks, too. snapshot across america coming up in a moment.

a photo shoot at new york metropolitan museum of art cut short. police hauled off the model posing with the exhibits but without any clothes. here's cnn's jason carroll. >> reporter: hundreds of nudes in the mets collection dating back when contemporary artists thought, in a way, it was time for another. the folks at the met say, think again. in central park the musical "hair." times square the self-described naked cowboy. this is new york where artistic forms of nudity and a backdrop to shoot his uncontentional nudes. >> i feel it has been exciting for everyone involved. >> reporter: he shot in times square and even a subway. >> how did this whole idea come about? >> the idea started actually, right here. >> reporter: the metropolitan

museum of arts. the classic nudes not only inspired his work, it gave him the idea of where to shoot the next project with model casey neal. were you surprised when they came up and found out, they're going to arrest me? >> yeah, absolutely. i didn't really know what to expect. >> reporter: the photos scene here from the "fork post" website shows her baring it all. >> the museum is an art institution and art institution, by its very nails is supposed to be open minded and open to new ideas. >> reporter: to which the spokesman says -- >> we have no stake or opinion on the legal issues and sort of wish the whole thing would go away. >> reporter: the incident raising an age-old question, what is art? in 1999, police arrested noted

photographer spencer tunik after he staged a shoot with 150 nudes in times square. his argument then very much like himick's now. >> if it is art it has to be viewed as art. >> reporter: showing them a small sampling of his work. >> art. >> looks like pornography to me. >> reporter: the reaction no surprise to casey. >> people either loving it or hating it and therefore creating this amazing conversation. >> reporter: the bottom line the metropolitan museum is interested in exhibitions and less interested in exhibitionests. >> reporter: it's up to the district attorney to pursue the case. hymen will continue to shoot his works in public. jason carroll, cnn, new york. all right, so, this story really had a talking this

morning, maybe a looking a little bit, too. we wanted to know what you thought. we asked the question on our blog, is it art or is it porn? go to cnn.com/heidi and we'll get to reading some of your comments later ooin the show. also get this breaking news out to you now. another u.s. service member is dead. that means august is now the deadliest month for u.s. troops in the nearly eight-year war. nato forces say the service member died when a roadside bomb exploded in eastern afghanistan. the death brings to 45 the number of u.s. troops killed this month. we will continue to follow this story all hour long. we'll bring you the very latest just as soon as it becomes available. >> my wife called me and said, are you sitting down? i said, yes. she said they found jaycee and she's alive. and we both cried for about ten minutes. matter of fact, my voice hasn't come back yet and we just talked

and she had told me that she had talked to jaycee on the telephone. >> a family's prayers are answered. a long lost child returns home as an adult. jaycee lee dugard is now a mother. the sex offender who abducted her in 1991 fathered her two children. all three locked away in a secret backyard compound. a story both remarkable and horrific. dan simon is joining us from antioch, california, with more on this. if you could, describe how authorities found out about all of this. >> yeah, heidi. this all really came to light on tuesday, august 25th, just a few days ago. so, garrido shows up at ucal burky and is there with two kids and he wants to pass out some sort of literature to students on camps and to do that you need

to have a permit and a background check. so a security officer confronts him and asked him apparently for his driver's license and then that security officer runs a background check on garrido and there it is determined that this man is a registered sex offender and that he has a criminal record. the security officer was suspicious about everything that he saw, the fact that he was there with two small children that loodz eads to a meeting wi garrido's parole officer the following day. he shows up at that meeting with his parole officer with the victim in this case. jaycee dugard and along with his wife, nancy and two children he fathered with jaycee. at the end of the day the parole officers discovers what's going on and alerts the local police

department and there you have mr. garrido and his wife arrested, heidi. >> just an unbelievable story as we continue to look at those pictures there. those mugshots, if you will. how were they able to keep this a secret for so many years? my understanding is right, reports of sheriff deputies or police going to the home during this time and not really noticing anything, is that right? >> you know, it's such a good question and we're hoping to get to that backyard later in the day to have a look for ourselves, but the way it has been described, there was a backyard within a backyard. a series of tents and sheds that were apparently covered with some kind of blue tarp, that is where jaycee dugard apparently spent the last 18 years living in the backyard of the house with her two children, children fathered by the suspect in this case, mr. garrido. i want you to listen to authorities now as they describe

what that backyard looked like. take a look. >> a search of the residence revealed a hidden backyard within a backyard. the hidden backyard had sheds, tents and outbuildings where yaycee and the girls spent most of their lives. a vehicle in the backyard that matched the vehicle at the time of the abduction. the tents in strategic arrangement to isolate the victims from outside contact. >> heidi, i have to tell you, we spoke to one neighbor who says he saw a couple of children living in the backyard of this house. he claims he called the local sheriff's department 2 1/2 years ago and authorities came out and talked to the garrido's short of a brief conversation and the home was never searched and never really nothing ever came of it, but according to this neighbor and some others here who live in this working class area in antioch, california, there were some suspicions, but,

of course, everybody surprised in terms of the extent of what happened. >> just an unbelievable story. phil garrido and his wife, nancy, now in custody. we try to learn and do more here. dan simon, appreciate that. as you mention, neighbors say there were some clues, strange things were taken place next door. in fact, here's what some of them had to say. >> the gate bothered me. >> cling, cling, cling, cling, in and out through the back. >> weirdoes. they weren't average people. you could just tell by looking at them. the way they walked around and stuff, you kind of got the creeps from them, you know. >> saw it on the internet. >> he said that, you know, he was in pris an while back he was in prison for 11 years for a crime against a woman. >> most neighbors say they had no idea that anyone other than the suspect and his wife lived on that property.

the public is getting another chance to pay their respects to senator ted kennedy today. people are lining up at the jfk library in bausen for a public viewing. his body will lie in repose until 3:00 this afternoon. deborah feyerick is outside the library now this morning. hi, once again, deb. certainly seems like that crowd has really not let up. >> it hasn't let up. as a matter of fact, we want to show you something very, very interesting. as we push in to this gentleman in the dark suit, shriver. that is one member of the kennedy family and senator ted kennedy's daughter and his two children, kennedy's grandchildren. they are greeting people and really making this very personal. thanking people for coming out and paying respects to the senator and so you really get a sense that there's a sense of

family here. that they're not taking for granted that so many people have come individually. inside people are filing past the casket as they have all morning. so many people online that they opened up the doors 15 minutes early and they talked to people and the issue is civil rights, guy rights, reproductive rights and everyone has come here for their own personal reasons. you met the senator, you're part of the immigrant community here. tell me what he means to you. >> senator kennedy allow me to ask. no way to find words to describe that. first of all, when we meet him, you'll find that human face. great and important politician who still has a heart and you don't feel that gap between an

authority and you. >> and clearly that's got to matter and because of the fact that he made you feel that you mattered. coming here first generation, describe that. >> i think we feel like we're in our country, too. that we are adopt ed and strang and i feel -- >> so he had the ability to make you feel welcome as you started your life here. >> yes. i wanted to mention that, you know, because of him and the work he did for us, for the immigrants that we are here today. i can proudly stand here and say that i'm, you know, i went to school in this country, i got my education, i am productive member of this society and, as well as productive in the society of the people. >> what makes this feel so

special, heidi, that is everybody who is here today really has an individual, personal connection both to senator kennedy and also to the kennedy family and that's what's so incredible. oftentimes you'll see people turn out for some sort of celebrity but here it is really as if they're paying respect to the family and that the family is here greeting them and thanking them for coming. heidi? >> it is obvious that they feel that they really knew the senator or other members of the kennedy family. want to remind everybody also that you can stay with cnn for special coverage of the life and death of senator kennedy. his body is scheduled to lie in repose at the jfk library until 3:00 eastern this afternoon and then a private memorial takes place at the library beginning at 7:00 tonight. tomorrow morning a private funeral mass gets under way in boston at 10:30 and then a burial service at arlington national cemetery. that's where the senator will be laid to rest near his slain brothers, john and robert.

dangerous times in southern and central california, wildfires are burning out of control around los angeles county and monterey county fueled by all the dry brush there. in fact, take a look at what happened to some of the homes near ranchoes paldaes verdes. meanwhile, a place where there were no whites only signs. this week the nation's first african-american president is visiting. we'll take you there, coming up. helping people save money doon car insurance.ut there gecko: aw thank you, sir. boss: but i think there are a few other things you can say about what a reliable company geico is. gecko: right. uh, well maybe how geico's the third-largest

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you may think of the first family's vacation spot at the playground for the rich and famous, but martha's vineyard actually has a history of welcoming rich and poor, black and white. cnn's dan lothian explains. >> reporter: when president obama played his first round of golf on martha's vineyard and when they all went out to eat at a local restaurant, the first family chose the town of oak bluff a sea side community that has long been a haven for african-americans where decades ago the color of your skin didn't close the door. >> the white only signs were up throughout much of the 20th century. this was the place that didn't have the signs. didn't have the barriers to. >> reporter: words spread quickly and african-americans who came to visit the islands came to enjoy this beach.

a tiny sliver of land that is often referred to as the ink well. a harvard professor, obama friend and a 15-year summer resident said it became a kind of community meeting place for african-americans and remains that way today. >> exercising every morning and not a house, not a temple. really is just out in the water, folks chilling and having a great time there. >> this is really quite telling. >> reporter: at the martha's vineyard museum, the history of african-americans on the island is traced back to the 18th century. some were slaves who when freed made a home here. other blacks came in search of good jobs. >> you could get on a whaling ship and in the 19th century you had the multi-ethnic and multi-racial. >> reporter: and while bill clinton and presidents have visited here, mr. obama's vacation carries more weight and draws attention to the rich

history that caresy portraying. 22 sites honoring people of color on the nation. >> we uncovered headstones and things. you can put your hands on it, see it, just a feeling you can't describe. we just want them to know that we were here. >> reporter: martha's vineyard a vacation destination for the first family that some see as another chapter in the island's deep african-american history. now later today a group of prominent african-americans will be holding an event here for groundbreaking for a housing project and also taking off the restoration of the oldest african-american church on martha's vineyard. 115 years old. just gives you a sense of the ongoing effort here to shine the spotlight on what african-americans have done on the island, heidi. >> the president will make some comments. what is he expected to say? >> that's right. the president and this is at the funeral mass for senator kennedy, they will be leaving the island later today headed to boston and trying to get into

the city ahead of what is expected as bad weather. he and the first lady will attend that funeral or mass and the presidentx pected to make personal comments about the impact that senator kennedy had on his life from new senator to a campaign to president. >> all right, dan lothian for us this morning, thanks so much, dan, appreciate that. the son of a cia double agent has pleaded guilty to spying for russia, just like his father. federal authorities say nathaniel nickelson was, in fact, enlisted by his father. he faces more than 20 years in prison when he is sentenced in january. his father is serving 23 years. he's the highest ranking cia officer to ever be convicted of espionage. americans with life-threatening illnesses traveling to mexico in search of treatment and maybe even a cure. but with the strength of zyrtec ® , the fastest, 24-hour allergy relief, i promise not to wait as long to go for our ride. with zyrtec ® i can love the air ™ .

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a look at our top stories now. a new set of killings rocks the campus of virginia tech. authorities now say they're treating the deaths of two students as a double homicide. the bodies of 18-year-old heidi lynn childs and 19-year-old david lee mesler were found in a nearby jefferson national forest and both appear to have been shot. two years ago, as you remember at virginia tech a student gunman killed 32 others and himself. police say a man shot and killed four people at a home near lawrenceville, georgia, just outside of atlanta. investigators say the man accused of the killings lived at the home and was arrested early this morning when he drove back to the scene. a 4-year-old girl, who was also shot, is recovering that hospital.

many americans fighting life-threatening diseases like cancer are traveling to mexico for treatment, a place where medical care can be cheaper and alternative methods are more accepted. in today's health care and focus, cnn journalist profiles a cancer patient who traveled across the mexican border in search of a cure. >> how have you been? >> pretty good. hanging in there. >> my name is denise fisher and i'm from alamo, california, in the san francisco bay area. i just arrived in the san diego airport and i will be going to oasis of hope hospital in tijuana. americans being killed in tijuana and other people called and said the swine flu is way too dangerous and you shouldn't go there. we really felt safety was not going to be an issue. >> home, sweet, home. >> reporter: i am a nurse and estist. my husband is a general surgeon

and in 2005 they found a big mass, a tumor. starting an iv and then he'll hook up the first thing that i'm getting which is janoxil. a low-dose chemotherapy. my husband said to me one night, i feel like you have given up. i feel like you're just going to accept it and die and if that's what you want to do, i will support you in that. but i really want you to fight. when i first was diagnosed and my oncologist gave me this long line of chemos that would basically kill me and he basically said i hate mexican clinices. >> so good to see you again. >> we have been working very diligently in changing the images especially in tewanty and i'm sure there are some, but there are some quacks all over the world. what we're doing here and done over the last 46 years are

scientifically-based therapies. >> incompasses many different approaches that many people define differently, but basically these are unproven therapies. a litdle niece in all of us. we sometimes challenge the status quo, especially when our backs are against the wall and we don't like the options we have. >> she's really strong. she's been a rail, a great leg of support to me. >> reporter: people from south africa, australia and all over the united states. >> i live in north carolina. >> i'm nfrom new zealand. >> i started have nonhodgkins limphona since 1996. i can't say enough about this place. the only hospital you cry when you leave. >> now, this being my third trip, i associate this whole area just with healing, with getting well. >> i think that my kids give me the will to live. they've got a lot of growing up to do and they need a lot of mothering between now and when

they're adults and i believe i'll be there to do it. i have a strong faith and i believe that god gave me my kids and he will allow me to raise them and i look forward to that. >> cnn photo journalist john tago there. if you'd like to know more about the health care debate and how the reforms could affect you and your family, check out the special health care in america section of the website, you can get the latest from town hall debates, fact checks, i-reports and other health care news. a lot of information there. go to cnn.com/healthcare. demonstrators oppose to what they call out of control government spending begin a series of rallies this afternoon. the so-called tea party express gets under way in sacramento, california, on the steps of the state capital. rallies are also planned later today in reno and sparks, nevada. we'll follow what is going on with these rallies all day and we will hear from one of the rally organizers in the noon hour of "cnn newsroom." america's housing crisis.

good news coming out this week. sales are on the rise, but so are prices. what does this all mean to buyers, sellers and the banks. it's our snapshot across america. imodium multi-symptom relief combines two powerful medicines for fast relief of your diarrhea symptoms, so you can get back out there. imodium. get back out there.

i think i'll go with the basic package. good choice. only meineke lets you choose the brake service that's right for you. and save 50% on pads and shoes. meineke. good news this week for home buyers and sellers. a new report yesterday showed new home sales are getting more than anybody expected and earlier we saw a rise in the prices for existing homes. gerri willis joining us now from new york with more on this. gerri, tell us what glimmers of hope there are in the housing market and maybe, more importantly, how long they could last. >> that is a great question. we are seeing glimmers of hope and you mentioned the new home sales number and that just blew

away expectations and a critically important part of the home market because new home sales generate jobs and generate sales in other areas and the big box stores that sell everything from furniture to, you know, lighting, you name it that really spurs the economy more broadly and then another glimmer of hope, as well, existing home sales up for four consecutive months. now, this is the big cugkahuna the housing market. the it is really critical that market get up and firing and the big question for people who already owned homes what are prices doing and where are they going? we saw just a couple weeks ago quarterly home prices for the quarter ended in june up 2.9% and i can't tell you how critical this is to consumer confidence and the way people feel improvement and people are more optimistic about the future. this adds to already the positive sentiment when it comes to sales, either existing or new

home sales. if you're starting to see, heidi, even in markets where sales have been abominable and prices have fallen 20%, 30% and 40%. signs of hope, signs of improvement. now, granted a lot of the buyers out there are actually people who are investors, they're people who may flip the home down the road, but this turn around is giving a lot of optimism to people who want to get into that market, frankly, for the first time. we're seeing it in parts of california, vegas, which has been a horrible market for the last couple of years starting to see some improvements, even florida here also starting to see some improvements and places like detroit, you know, we're really starting to see momentum in the opposite way instead of down and that's what we've all been waiting for, heidi? >> all right, our personal finance editor, gerri willis. in fact, we'd like to dig deeper into what these housing numbers really mean part of our snapshot across america today.

matt blashaw host of deconstruction. >> and we have regional president of toll brothers, leader in new home construction and julie is a ceo with omny bank out of houston, actually in new york out of houston. we'd like to begin with you, doug, this morning. in fact, we have seen these encouraging numbers that we've just been talking about. does this mean that the housing market is really on the rebound or is it a little too early to say that? what do you think? >> well, we feel great. we certainly feel better than we did six months ago. we've been reporting improvement in sales over the last five and a half months. if you look at our communities on a same-store community we're up 32%. the buyers are much more motivated and beginning to reduce incentives and beginning to raise prices and while it's a buyer's market, they may not last too long. we have lot of buyers out there

who understand that and are starting to come back out. >> matt, what do you think? same question for you. yeah, we're on the rebound, we're good. >> i think a lot of these buyers are taking advantage of the tax credit. that's what i always hear when i'm looking for my buyers. i want to take advantage of that because it has to close, the deal has to close by december 1st or they lose it. so, they're looking after these deals so i want to see, is this just kind of a sats of whether they're taking advantage of the credit? i think a couple more months of these home sales going up and i think we're going to really see a lot of movement and a lot of these, too, are short sales that that's all i see out here is a lot of short sales and not a lot of equity sales and the banks, they're finally starting to have these departments and streamline these short sales. so we're seeing these things go through and that's contributing to the home sales, as well. >> let's talk to the bank lady, julie. what do you think about all this? is it time to say we're on the rebound here? >> definitely time for cautious

optimism and i'd like to think of it on this road to recovery across the united states where actually have some different speed limits so, regionally a little faster to recovery. texas is doing great and is actually doing some home building and having good sales. i think it's great nationwide to see the sales up. >> all right, very good. we saw prices, as we have said, doug, for existing homes go up last month. what are you expecting, though, for the new home market? we should also talk about prices here. we get these numbers and then we don't talk too much about how much money was knocked off that asking price and what sort of deals are out there? >> well, as i mentioned, our incentives are coming down and two great stats came out this week. the k. shillner dex of new homes showed an increase in the price of homes in 18 of the 20 markets they study. that's very encouraging and

commerce came out this week and disclosed that sale of new homes are up 10% and we haven't had that number since february of '05 and we all remember february of '05 and the fabulous times we had then. very quickly to match point. the first time tax credit is helping, but we sell $600,000 homes. we don't sell to the first-time buyers and we reported some of the best numbers in the industry. so, i think it's a lot more than that first time tax credit. >> very interesting. matt, in fact, we'd be curious to know, what type of homes are most attractive to buyers out there in southern california? a lot of times we hear about that $400,000 mark, if you will. those are the homes that seem to be moving all the time. >> $400,000 is the mark. anything under that is really, really moving and that's, we're talking, i put in offers that had about, these houses have 50, 60 offers on them. we're talking, they're going quick. >> interesting.

julie, for you, i guess people are probably wondering what about the credit? is it fair to say that credit is flowing better now, too, because, obviously, in the beginning of all this this is a real issue because even if you wanted to buy a house you had to have this remarkable credit history, of course, and then you had to be prepared to put down a substantial down payment on a home. >> yes. credit is flowing. banks are loaning still and using prudent credit standards which helps us all but there will be a requirement for people to have a solid down payment of 15% probably, maybe 10, but most likely 15% or 20%. >> because it's been 20 for a while. all right, well, to the three of you, we sure do appreciate it. everyone very interested in this. at home, a lot of people have homes and if they don't, they'd like to have one. thank you for your input. thanks, guys. >> no problem. a school bus hijacked by a

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now seeking out today the stepfather of an 11-year-old girl abducted 18 years ago and found this week. police say jaycee dugard was kidnapped in central california by a registered sex offender. they say the suspect forced her to live in a shed in his secret backyard compound in the town of antioch. police say garrido fathered two children with dugard and he is in custody along with his wife.

dugard has reunited with her mother and her stepfather says the ordeal has been traumatic. >> i did lose hope but it's over and the last 18 years have been pretty rough. these last two days have been pretty good. it's got an ending to this. >> police arrested garrido when he showed up at a parole office with dugard on wednesday. a memorial service is being held tonight for an oklahoma pastor brutally killed inside her church. police say 61-year-old carol daniels died of multiple sharp force injuries happened in the town of anadarko. police say whoever killed daniels moved her body into an unnatural position after the murder. investigators are reviewing surveillance tape now for clues. >> what we know right now from witnesses and from surveillance video, she gut the church about 10:00 that morning and her body was found about noon that day.

>> a $10,000 reward is being offered for information about the killing. a terrifying ride home for some students in atlanta after police say a nearly naked man hijacked their school bus. police say the man jumped through the driver's side window of the school bus and overpowthered driver while the bus was stopped near a convenience store. there were nearly a dozen students still onboard. police say one student tried to get control of the bus and the man fought him as the bus careened off the road and into a ditch. >> once he jumped off, we grabbed him. he slipped away and tried to get up under the bus and he had on sweatpants and he had pulled them down and like he was driving the bus with his pants down. >> witnesses say someone held the man down until police arrested him. two students and the bus driver were hurt.

celebrating a life and paying respects. you're looking at live picture ns now of the jfk library in boston. people are getting a chance to say good-bye to senator ted kennedy. his body will lie in repose until 3:00 eastern this afternoon. a private funeral mass for kennedy takes place tomorrow in boston and then the legendary senator will be laid to rest at arlington national cemetery near his two slain brothers. cnn's barbara starr reports. >> reporter: the final resting place for senator edward kennedy will be by these trees on the sloping green hill close to the graves of his brothers, john and robert. arlington superintendent jack metsler showed us the site. the senator will be laid to rest here. >> yes. >> reporter: his family? >> his family will be here and approximately 200 people will attend the service and closed

funeral, invited guests only. senator kennedy will receive military honors. >> reporter: sem tar staff are already working at the burial site, but this area will close early saturday while the grave is prepared. it was just in the last few weeks that this site was selected. it's an area senator edward kennedy knew well. >> senator kennedy was here all the time. he came on the anniversaries of the deaths, he would come on the anniversaries of the births, if he was available, he would just come. sometimes he would announce himself and other times we would be up here doing maintenance and we'd find him up here. if he came to funerals of one of the soldiers from his state he would, always before he left the cemetery, have a prayer or quiet visit here. sometimes he would spend five minutes of the times he would talk to the people until they quit talking to him. he'd spend a half hour, 45 minutes just talking to people and visiting with his brothers. >> reporter: president kennedy visited arlington just a few

days before he was assassinated in november 1963. from the top of the hill, he looked out over this vista of the nation's capitol and said it was so beautiful he could stay here forever. now, all three kennedy brothers will be reunited on this arlington hillside. barbara starr, cnn, arlington national cemetery. all right, want to go back to some of those live pictures now because we continue to watch people file through as the senator lies in repose. we're looking, actually, right now, william kennedy smith. you see there greeting people as they come by the casket and, also, to the right of him on your screen, sister jean kennedy. we will continue to watch these pictures, again. you can stay with cnn for special coverage of the life and death of senator kennedy. his body is scheduled to lie in repose at the jfk library until 3:00 eastern this afternoon. and then, a private memorial

takes place at the library beginning at 7:00 tonight. now, tomorrow morning, a private funeral mass will get under way at 10:30 in boston and then there's the burial service at arlington national cemetery. as you know by now, the senator will be laid to rest near his two slain brothers, john and robert. you know how the recession has put a hurt on your 401(k), well, now another reason to be concerned about your retirement savings. show and tell

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the recession and financial crisis have taken a huge bite out of most 401(k)s and now a new hurdle to rebuilding your retirement. stephanie ela mrrx has our break down now from new york. hi, stephanie. >> hi, heidi. bearer of bad news here. for the first time ever the government may reduce how much money we can stock away in our 401(k)s. a formula based on inflation, which has been negative since march. human resource consultant says unless inflation picks up, the irs may have no choice but to cut contribution limits. this year $16,500 for most workers. that's the number. americans who are 50 and older are allowed to put aside an extra $5,500. but next year the irs could be force to cut those limits by $500 each, heidi. that's why we're paying attention to this one. >> yeah, what is the irs saying

about it? >> the agency says it's reviewing the relevant law but warrants too early to speculate since all the inflation data isn't out yet. still, retirement experts are concerned. the value of the average 401(k) fell 27% last year, basically a third of people's nest egg just being wiped out right there. that's huge. one way to catch up is to max out your contribution, cutting the limits makes it harder to build up your nest egg back to where it was. one expert tells us, "this is the absolute worst thing you could be hoping for. he says with money tight people are already tempted to contribute less money. the exact opposite of what people should be doing right now. sadly, this will affect few people since most people don't max out their 401(k) contributions anyway and a lot of times companies match that and that's free money that they're missing out on. >> not just 401(k) contributions either. a lot of other things linked to inflation. >> negative inflation rates mean social security beneficiaries may not get a raise next year.

the first time seniors haven't gotten an increase since 1975. that's when cost of living adjustments were adopted. we'll find out for sure in october, the same month hat the irs will announce next year's 401(k) limits. we'll watch both of those, heidi. >> very good. stephanie elam with the break down, thank you, stephanie. not exactly a happy ending for all auto workers. toyota is announcing it's closing a plant in california, putting thousands of people out of work. susan lisovicz is at the new york stock exchange with more details on this and the market movement today. good morning to you, once again, susan. >> hi, heidi. well, well, toyota is closing the only major auto plant west of the rockies location is fremont, california, south of san francisco. it was a 25-year joint venture with gm, but gm pulled out when it went bankrupt and it was simply too expensive for toyota to keep up on its own and too inefficient. the plant employees nearly 5,000

workers who put together corolla compact cars and tacoma pick-up trucks. now, production will be moved to san antonio and also ontario, canada, and japan. many, many of these jobs are at risk and at a terrible time for california, which, of course, we all know has been hard hit by the housing crisis, in particular. the recession in general and it is a higher than average unemployment rate and has a budget crisis. the plant closing, of course, will have reprecussions. it will hurt tax revenue and local businesses, as well as suppliers, heidi. the uaw, governor schwarzenegger and many other people are really lemeanting this decision by toyota. >> a lot of people associate toyota ahead of the curve cars like the prius, everybody knows that now. this just shows how wide-reaching all the auto problems are. >> toyota has been stealing market share from toyota's big three. but this global recession has hurt everybody, including

toyota, which has never closed a major assembly post but posted its worst annual lost more than $4.5 million and delaying completion of a mississippi plant and halting a japanese assembly line next year and toy o toyota was the biggest beneficiary of the cash for clunkers program. even toyota is feeling the pinch and so is the dow industrials after eight straight sessions of wins, we're seeing the blue chips in the red, the nasdaq, however, is up about 0.5%. and we still have hours to go. >> we do. we'll turn this thing around. all right, very good. susan lisovicz, thank you. >> you're welcome. want to get you over to bonnie schneider with an update on tropical storm danny. all right, bonnie, where are we with this guy? >> new information for you. the latest track and the latest forecast has shifted slightly. right now the maximum winds are still where they were, about 40, 40 miles per hour, but gusts are up to 50, so, still a fairly

strong tropical storm but not forecast to reach hurricane intensity. however, there is a change. take a look at the track and as i open up the scope, look at where this cone of uncertainty stretches all the way a little further to the west, including a good portion of cape cod in the islands of martha's vineyard and nantuck nantucket. this reej could see tropical storm force winds by saturday afternoon, saturday evening. this still move away by the canadian maritimes by sunday, but that slight shift to the west as we track this storm and just goes to show you that tropical storms are always very unpredictable when it comes to that wobbling, that last-minute movement. we're monitoring danny very closely, heidi, just to see where it will go. not a hurricane and tropical storm, but be on guard up and down the east coast about this storm. >> thank you. new orleans still in recovery four years after hurricane katrina. some in the city are blaming that on mayor ray nagin.

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good choice. only meineke lets you choose the brake service that's right for you. and save 50% on pads and shoes. meineke. we are been telling you this story all morning long about a nude model arrested because they've been doing a photo shoot right there in new york's metropolitan museum of art. she was posing for picture there's without permission and got busted. we wanted to know, the question was specifically on our blog today is it art or is it porn? so, we've been getting a lot of responses today, just want to go ahead and check out what some of you had to say. ron says if it's against the law, it's against the law. that being said, you're in a museum, you're there to see beautiful things, including nudes. i can think of nothing on earth more beautiful than the female body. okay, then this one here from

bill. here's a thought. how about you take the extra step and get permission to do the shoot after hours and then it isn't an issue. finally, liz says art, but, they should have been more careful around the children. okay. back in a moment in the cnn newsroom.

breaking for a new public housing project and nagin told me he isn't surprised. >> i don't think any leader after disaster pretty much survives. if you go look at japan and other major disasters, most of the leaders are kicked off. i was fortunate or unfortunate to be standing here as we continue to progress. and what i find is that citizens want the immediate fixes when there was no immediate fix. i took the brunt for that. >> i am so hummable today. >> reporter: in may 2006, nine month after katrina hit, he was re-elected mayor. but since then, he's had a bunker mentality with the perception he's rarely seen in public at the time when new orleans needed a strong, visible mayor. >> why did your mayor run for

re-election? do you have that answer? >> i didn't want to leave the city in a state of total disrepair. i wanted to put some things in motion and i felt i was best qualified to do that and we'll see if it all works out. >> reporter: while maeany areas tourists see are flourishing, many areas remain devastated. many new orlynnians blame nagin. for his part, he says he was ready to lead, but was the city ready to follow? >> there have been days when i questioned whether the city was really ready to move forward and red eto deal with the issues that i was bringing forward. but i'm too old to change now. i came to office as kind of a newbe and i have spent my life telling the truth and sometimes that works out in politics and sometimes it doesn't.